Pharmaceutical Industry in Turkey1

Dogan UVEY*, Ayse Nur GOKCE*, Ibrahim BASAGAOGLU**

* Istanbul University, Faculty of Medicine, Department of Deontology and Medical History, TURKEY

** Istanbul University, Cerrahpasha Medical Faculty, Department of Deontology and Medical History, TURKEY
e-mail: ibasagaoglu@tnn.net

Summary
During the Ottoman period drugs were prepared by physicians. In the beginning of the 19th century drugs started to be prepared
in pharmacies called “saydalan” and “ispençiyar”. Official pharmaceutical education was assumed to start in Turkey with the “Eczane
Sýnýfý” (pharmaceutical class) in “Mekteb-i Týbbiye-i Þahane” (The Royal School of Medicine).
Two kinds of drug preparations were on sale at the pharmacies in Istanbul.
1. Foreign Medical preparations
2. Local Medical preparations
Local drug production can be studied in 4 periods.
1. The pharmacy period
2. The laboratory period
3. The factory period
4. The active drug matter production period
By 2003 there exist 85 drug producers, 11 raw material producers, 38 importers, totaling to 134 firms. With a product variety up
to 4000 kinds amounting to a capacity of TL 50 trillion, Turkey exports preparations and active drug matter up to 50 countries.

Key words; Drug, Preparation, Industry.

During the early Ottoman period drugs were gen-
erally prepared by physicians. Rooms called “Hekim
Dükkaný” (Physician’s Store) functioned as drugs
preparatory locations as well as treatment centers. In
the following years the duty to prepare drugs were
substantially overtaken by pharmacists known as
“Saydalan” or “Ýspençiyar”, which is a piece of infor-
mation revealed from the court registrations dated
August 1467 in Bursa.
The official pharmaceutical education in Turkey is
assumed to begin with the “Eczacý Sýnýfý” (Class of
Pharmacists) at “Mekteb-i Týbbiye-i Adliye-i
Þahane” (The Royal School of Medicine) (1).
The renowned chemists teacher of The School of
Medicine, Antonnia Kalleja, indicated in one of his
writings that at the time there were two kinds of drug
preparations in Istanbul, Tiryak and Oðulotu.
With widely use and increasing importance of med-
ical preparations among physicians, pharmacists and
the public, new drug compounds were prepared in
“Ýngiliz Eczanesi” (the English Pharmacy) laboratories
launched by Kanzuk and these were put on the market.
As of the launch of local drugs, patients were
given two options for drugs to choose from:
1. Foreign Medical Preparations
2. Local Medical Preparations: The first apothecary
preparations of the Ottoman period were prepared
by owners of big pharmacies like Büyük Eczane,
Ýngiliz Eczanesi, Avusturya and Macar Eczanesi
and Büyük Paris Eczanesi, which were owned by
Christian pharmacists.
Among Muslim pharmacists Hacý Hamdi Bey is
the first to have prepared the first drug compounds. In
the pharmacy he opened in the Zeyrek Yokuþu in

1 This paper was presented as an oral presentation at the 38th International Medical History Congress in Istanbul

46 JISHIM 2004, 3
PHARMACEUTICAL INDUSTRY IN TURKEY
1880, he contributed to public health with the drugs
he named “Kola Hamdi, Elixir Digestif Hamdi,
Kefir”.
As a good example, he was followed by pharma-
cists such as Abdi Ýbrahim, Ethem Pertev, Beþir
Kemal, Hasan Rauf and Mustafa Nevzat (2).
Ready drug preparation can be
divided into four periods:
1. Pharmacy period
2. Laboratory period
3. Factory period
4. Drug active matter production period
1- Pharmacy Period
The first local drug preparations, formulated
either in pharmacy laboratories or small workshops
during the “Pharmacy period” covering the period
between 1833 and 1927, were prepared as mere imi-
tations of imported and high-selling drug prepara-
tions. After a while the commonly used formulas by
the renowned physicians of the time were prepared at
pharmacies and presented to patients.
2- Laboratory Period
The number of local drug preparations in Turkey
in 1930 was about 300, most of which were prepared
at pharmacies while 20 of them at laboratories. What
brought the end of small local pharmacies were “The
Foreign Capital Incentive Law” enforced in 1954
paving the way for giant foreign pharmaceutical
companies to come to our country to establish drug
production factories, which coupled with the enforce-
ment of “The Pharmacies and Medical
Preparations Laboratories Regulations” dated
1954, which brought heavy financial responsibilities
to the companies in question when they established
factories and production facilities. Furthermore, the
law required the allocation of a separate building for
drug production. The mentioned points were mainly
legislated with the entrance of foreign companies to
the market, but caused some small initiatives to get
out of business and others to merge with foreign
companies, thus maintaining their existence.
JISHIM 2004, 3
Dogan UVEY, Ayse Nur GOKCE, Ibrahim BASAGAOGLU
3- Factory Period
Fabricated drug production in Turkey started in
1952 with the establishment of “Eczacýbaþý Ýlaç
Fabrikasý” (Eczacýbasi Pharmaceutical Factory) in
Levent, Istanbul. With the requirement of regula-
tions, many small local companies moved into their
separate facilities, which they built with great effort,
undertaking great financial difficulties, renewing
their techniques and merging with foreign compa-
nies, thus keeping pace with the latest trend, that is,
serial production. As a result of these developments,
the “all-local” pharmaceutical preparations for-
mulized by Turkish pharmacists were gradually left
aside and foreign preparations were started to be pro-
duced (Abdi Ýbrahim, Eczacýbaþý, Ýbrahim Ethem,
Fako, Mustafa Nevzat). While local firms main-
tained producing foreign products under license
agreements, some foreign-based firms (Roche,
Bayer, Sandoz etc.) started to produce at their own
facilities. Harmonizing the accumulation of knowl-
edge and experience gathered during the previous
pharmacy-laboratory periods, the Turkish pharma-
ceutical industry, especially as of 1990, managed to
improve itself by keeping pace with the latest tech-
nology and world standards. In 2002 the Turkish
pharmaceutical industry increased its capacity to sat-
isfy 90 % of the domestic market, besides realizing
exports. The golden period of the Turkish pharma-
ceutical sector started with the foundation of the
Employer’s Union of Pharmaceutical Industry in
1964, aiming at moving in unison to be successful at
world standards (3).
Today, 134 companies operate in the Turkish
pharmaceutical industry;
— 85 pharmaceutical manufacturers
— 11 raw material manufacturers
— 38 importers
8 out of 35 companies operating with foreign cap-
ital have their own production facilities in our coun-
try. The others put their products in the market either
through importing or fason production (4). If the geo-
graphic distribution in the pharmaceutical sector is
studied, it will be obvious that due to various factors
such as the existence of a convenient infrastructure,
47
Dogan UVEY, Ayse Nur GOKCE, Ibrahim BASAGAOGLU PHARMACEUTICAL INDUSTRY IN TURKEY

packing equipment, qualified technical personnel, Raw Material Production

transportation and communication means, and the
density of health institutions in the Marmara Region
caused most of the big pharmaceutical companies to
establish their factories in Ýstanbul, Kocaeli and
Tekirdað.
Employment
While in 1995 the number of employees working
in the pharmaceutical sector was 12.634, the figure
rose 38%, amounting to 17.440 employees in 1999.
Due to its requirements, the pharmaceutical industry
employs the most qualified, university graduate
employees in the market. The rate in 1999 rose 46%.
Pharmaceutical raw material production in our
country began in 1971 with the tetrasiklin produc-
tion, coupling with the establishment of facilities pro-
ducing other semi-synthetic material such as peni-
cillin and sephalosporin and becoming a sector pro-
ducing the active matter of various drugs by means of
fermentation, extraction and synthesis in order to
substantially get antibiotics and analgesics. The
foundations of pharmaceutical raw material sector
were laid by private sector.
The only state initiative is the Afyon Alcholoid
Factory. Production facilities mostly belong to local

Employment Figures in the Pharmaceutical Sector (5)

Branches Number of Employees
Pharmacist 620
Chemical Engineer 740
Chemist 565
Physician 299
Biologist 758
Other Engineers 866
Economist 727
Other University Graduate Personnel 3,581
Managerial Personnel 3,567
Technician 643
Laboratory Assistant 273
Qualified Personnel 1,854
Unqualified Personnel 2,946
Total 17,440 (4)

firms. Today only one firm with foreign capital oper-
ates in the market.
There was a substantial decrease in production
level between 1995-2000. Following the Customs
Union the funds applied at importing active matters
of locally produced drugs were abolished, which
brought along a competitive environment where, in
the course of time, the incentives were cancelled,
playing important roles in the decrease. The produc-
tion of synthetic penicillin, which held a grand
importance in drug raw material sector in 1970s and
1980s, came to a complete halt (7).
Consumption
In 1999, drug sale at the value of $2.5 billion was
realized in Turkey.

48 JISHIM 2004, 3
PHARMACEUTICAL INDUSTRY IN TURKEY
According to the data belonging to 1999 regard-
ing the treatment groups: antibiotics ranks first with
20%, painkillers second with 13%, drugs for cold,
rheumatism drugs and vitamins rank next.
Foreign Trade
Export
The Turkish pharmaceutical industry has acquired
a level of quality, activity and trust so as to compete
with many countries operating in the sector. In 1999
the export figures of the sector amounted to more
than 50 countries including Germany, U.S.A,
Belgium, Finland, Holland, England, Switzerland,
Italy and Japan. The Turkish pharmaceutical indus-
try has to continuously make both technical and mar-
keting investments in order to keep pace with the
ever-increasing cost of technical requirements and to
be successful at foreign markets. However, the prob-
lems arising from the pricing system of Turkey, high
level of Value Added Tax (VAT) rates, the draw-
backs emerged in recent years have prevented the
sector to obtain a high level of profit margin.
Financially weak firms are not expected to display a
high level of competitiveness. Thus, to support and
strengthen the Turkish pharmaceutical industry hold
a privileged position.
Export of the pharmaceutical Sector (million $) (7)
Raw Drugs
Years Material produced
1997 39 59 98
1998 61 68 129
1999 67 61 128
Conclusion
Today, the national and international pharmaceu-
tical firms are among the most prominent sectors as a
result of the efforts they have spent for 50 years in
JISHIM 2004, 3
Dogan UVEY, Ayse Nur GOKCE, Ibrahim BASAGAOGLU
order to bring the Turkish pharmaceutical industry to
a higher level. The contribution of the
Pharmaceutical Industry Employers’ Union in the
mentioned progress should not be omitted. Opening
to foreign markets speeded up with the tightening
relations with the Turkish republics. The Turkish
pharmaceutical industry has always been in touch
with various organizations such as International
Federation of Pharmaceutical Manufacturers,
Pharmaceutical Group of the European Union,
European Association of Pharmaceutical
Wholesalers. As a result of the close relationship and
application of the decisions in the sector, the Turkish
industry covered a large gap and took strong steps
towards betterment and development.
The foundations of the Turkish pharmaceutical
industry were laid with the drug preparations in phar-
macy laboratories in 1860, and today the sector main-
tains its production in about 100 modern production
facilities with up to 4000 medical products, TL 50
trillion production value, an export capacity of $ 150
million to 50 countries, besides being able to export
drug preparations and drug active matters and to sat-
isfy the local market by 90 %.
REFERENCES
1. Baytop T. Türk Eczacýlýk Tarihi Ders Kitabý (History of
Turkish Pharmacy). Istanbul. 1985:12-175.
2. Uvey D. Dr. Feridun Frik ve Türk Ýlaç Sanayii (Dr. Feridun
Frik and Turkish Drug Industry). Istanbul: Sunday
Matbaasý, 1995:21-65.
3. Baytop T. Türk Eczacýlýk Tarihi Araþtýrmalarý (History of
Turkish Pharmacy Researches). Istanbul. 2000:12-75.
4. Rapor (Report). Istanbul : Publication of Union of
Employers in Industry of Drug and Chemistry, 2000: 2-4.
5. Rapor (Report). Publication of Union of Employers in
Industry of Drug and Chemistry. Istanbul 2001; 3:20-2.
6. Uvey D, Gokce AN, Basagaoglu Ý. Pharmaceutical
Manufacturers Association. Proceedings of the
International Meeting of the History of Medicine (October
10-13 Lisbon, Portugal) 2001:.165-70.
7. Türkiye’de Ýlaç (Drug in Turkey). Istanbul: Union of Drug
Employers, 2002: 3-5.
49